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Terry Smith

Terry Smith

Founder & CIO — Fundsmith
Quality Growth Long-Term Buy & Hold Global Equity
AUM (13F)
$17.12B
Positions
37
Latest Filing
Feb 17, 2026
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Fund Founded
2010
Style
Quality Growth
Typical Positions
20–30
Net Worth
$500M+
Biography

Terry Smith is the UK's most prominent stock picker and is often called 'the British Warren Buffett.' After a distinguished career as a sell-side analyst and then CEO of Collins Stewart and Tullett Prebon, he founded Fundsmith in 2010 at age 57. The fund's simple three-part philosophy — buy good companies, don't overpay, do nothing — has resonated with hundreds of thousands of UK retail investors and made Fundsmith one of the largest equity funds in Europe by assets.

Smith is famous for his annual shareholder letters, which are candid, witty, and sharply critical of investment industry conventions he views as wasteful or misleading. He invests globally in high-quality consumer, healthcare, and technology companies with high returns on capital and genuine pricing power. He lives in Mauritius and has been openly critical of UK tax policy. His fund's long-term track record consistently places it among the top-performing large-cap equity funds globally.

Investment Philosophy

Buy good companies. Don't overpay. Do nothing. It sounds simple because it is. The enemy of a good investment plan is the urge to do something.

— Terry Smith, Fundsmith
Notable Trades
WIN
Microsoft (long-term)
One of Fundsmith's longest-held positions, bought at relatively modest valuations before the cloud transformation drove a decade of outperformance.
WIN
Meta Platforms
Bought Meta during its 2022 trough when sentiment was extremely negative. The position has returned multiples since.
WIN
Philip Morris / IDEXX
Fundsmith has long held consumer staples and healthcare companies with extraordinarily high returns on capital, generating compound returns over many years.
LOSS
Twitter pre-acquisition
Held Twitter before Elon Musk's acquisition, which provided an exit at a premium, though the position underperformed for years beforehand.
CURRENT
Consumer & healthcare compounders
Fundsmith's core holdings remain high-quality consumer brands and healthcare companies with durable competitive advantages and pricing power.
Top Holdings — Fundsmith
Top 5 Holdings · Q4 2025 Filed Feb 17, 2026
1
WATERS CORP
7.9%
2
STRYKER CORPORATION
7.6%
3
IDEXX LABS INC
7.4%
4
VISA INC
7.2%
5
MARRIOTT INTL INC NEW
7.2%